AUD/USD's pullback continued on Monday,......>

AUSSIE: AUD/USD's pullback continued on Monday, after last week's rejection

above $0.7200 & failure to consolidate above the 200-DMA, as the AUD was

pressured by Chinese stocks faltering on default & rights issue worries, as well

as questions surrounding the willingness of policymakers to continue with

sizeable stimulative policies, after the Politburo pointed to the need for

medium to long term structural reforms on Friday.

- The AFR has reported that the Australian PM will "today pledge to help create

250,000 new small businesses over the next five years." This comes ahead of the

federal elections, with the government set to seed the fund with A$100mn.

Estimates suggest that that the fund could grow to A$1bn as it matures.

- AUD/USD shed ~20 or so pips on Monday, and last deals at $0.7138, a handful of

pips higher on the day. Immediate support is located at the 100-/21-DMAs, which

come in at $0.7130. A break below here would open up a move to the Apr12

low/50-DMA/55-DMA at $0.7116/14/12.

- Australian CPI, due Wednesday, provides the highlight of this week's domestic

docket.